Cairo – Mubasher: The European Bank for Reconstruction and Development (EBRD) on Tuesday announced extending further support to the Egyptian economy, particularly small and medium-sized enterprises (SMEs) through a deal with the Arab African International Bank (AAIB).

The deal entails a $30 million loan or credit line that will enable AAIB to expand its SME lending schemes and better financing options for small businesses in the most populous Arab country.

“A comprehensive technical assistance package is expected to support AAIB to develop its SME financing services, and strengthen its skillsets and competitiveness,” the EBRD said in its statement.

This is the first agreement to be carried out between the EBRD and AAIB.

The EBRD is pleased to expand its financing in Egypt through AAIB as “supporting private SMEs in Egypt is one of our main priorities as they play a key role in economic growth,” EBRD president Sir Suma Chakrabarti stated.

SMEs account for over 90% of all firms across Egypt and provide the majority of jobs in the country; however, their access to finance continues to be limited.

“While there is a consensus that supporting SMEs is a priority for Egypt’s socio-economic growth, there is also an urgent need to understand and respond to the specific requirements of this segment,” stated Hassan Abdalla, AAIB vice prresident and managing director.

 He added that the new SME funding facility signed with the EBRD “will create powerful synergies” and enable AAIB to support SMEs “with the same customised solutions that have distinguished our support for corporate clients over half a century.”

A founding member of the EBRD, Egypt has been receiving funding since 2012, bringing the EBRD’s total investments in the country to EUR 3 billion across 66 projects.